January power demand highest in 3 months but diesel sales skid

NEW DELHI: India’s electricity consumption rose at the fastest rate in three months in January but a sharp decline in demand for diesel, a key indicator of economic activities, and tapering petrol sales indicate economic recovery remains shaky.
Electricity consumption was in excess of 111 BU (billion units) in January, indicating a 6% growth over 105 BUs in the same month of 2020. Peak power demand also clocked a growth of nearly 11% at nearly 190 GW (gigawatts) January against almost 170 GW in the same month of 2020.
Peak power demand, highest energy supplied in a day, had hit an all-time high of 189.64 GW on January 30.
Officials attributed the growth in power consumption to a resurgence in industrial activities. Grid data indicate industrialised southern region consuming more power than other regions.
But monthly January data of state-run fuel retailers, who dominate 90% of the market, shows a 5% drop in sales from a month ago, reversing the sustained uptick since September 2020.
Diesel demand had spiked nearly 22% month-on-month in September 2020 after the government began lifting Covid restrictions.